Harshad Mehta exploited flaws in the stock market and the Indian banking system to benefit himself, committing the largest financial fraud in Indian history. He was, however, neither the first nor the only one. There are numerous loopholes in the stock market that traders can take advantage of to profit.
Here are three common stock market money-making loopholes that many traders and investors take advantage of.
Key Stock Market Loopholes for Profit
Trading in Arbitrage
Arbitrage trading is defined as purchasing an asset in one market and selling it in another in order to profit from the difference in the prices of the same asset in the two markets.

Arbitrage trading is based on a common stock market flaw: the price difference between the same stock on different markets.

For example, the image below depicts the prices of Maruti Suzuki on India's two largest stock exchanges. Maruti's BSE closing price is Rs 9,167, and its NSE closing price is Rs 9,173.

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